SBI, HDFC Bank, ICICI Bank remain Domestic Systemically Important Banks in 2024, says RBI

Mumbai: State Bank of India, HDFC Bank and ICICI Bank have again been named as Domestic Systemically Important Banks (D-SIBs) by the Reserve Bank of India.

The Reserve Bank on Wednesday came out with the list of D-SIBs.

Inclusion in the list requires the lenders to maintain higher Common Equity Tier 1 (CET1) in addition to the capital conservation buffer as per the bucket under which it has been classified.

The State Bank of India (SBI) continues to be in bucket 4, which will require the country's largest lender to keep an additional CET1 of 0.80 per cent, as per the list.

HDFC Bank, the largest private sector lender, continues to be bracketed in bucket 2, under which it will have to maintain a higher CET1 by 0.40 per cent.

The Central bank said the higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 01, 2025. "Hence, up to March 31, 2025, the D-SIB surcharge applicable to SBI and HDFC Bank will be 0.60 per cent and 0.20 per cent, respectively," it said.

ICICI Bank is classified in bucket 1, wherein the second largest private sector lender will have to maintain an additional 0.20 per cent in the CET1 buffers.

The RBI said the classifications are based on data collected from banks as of March 31, 2024.

The RBI had first announced the framework dealing with D-SIBs in 2014 and tagged SBI and ICICI Bank in the list in 2015 and 2016.

In 2017, it added HDFC Bank to the list along with the other two banks.